Japan announced on May 12 it would stop importing Chinese fowl and eggs after finding two cases of a flu virus in a Shandong-based firm's exports of duck meat.

It issued an import warning on Chinese frozen spinach on May 20 using the pretext of higher-than-permitted amounts of pesticide residue.

The warning came less than three months after Japan lifted its previous ban at the end of February. This came into effect in August 2002, virtually blocking China's exports of frozen spinach to Japan.

Japan is imposing stricter exit quality supervision and inspection and quarantine measures on China's annual US$600 million exports of eels at the same time.

But after tracking member companies, the China Chamber of Commerce for the Import and Export of Foodstuffs, Native Produce and Animal By-products (CFNA) said no flu epidemic has occurred in East China's Shandong Province.

The chamber, a national association attached to the Ministry of Commerce, represents over 4,000 Chinese exporters of farm produce.

Chamber President Cao Xumin said the national blockade imposed after the detection of two flu virus-infected cases out of thousands of tons of Chinese exports shows Japan has turned health measures into trade protectionism.

China has exported 92,000 tons of fowl this year, including 90,000 tons of chicken and 740 tons of duck, according to official Chinese statistics.

Although Japan later recognized the flu virus will be killed and rendered harmless after it is exposed to high temperatures, it is only allowing imports from only five Chinese factories instead of the chamber's recommended 45.

The "irrational" restriction was clearly intended to block Chinese exports of farm produce and violated World Trade Organization rules, said the president.

Cao also criticized the Japanese spinach warning as being out of compliance with its promises in the memo it signed with China's quality supervision and inspection and quarantine departments in February.

Instead of issuing an import warning immediately after finding higher-than-allowed pesticide amounts of residue, Japan promised to stop imports from guilty companies and hold bilateral talks with Chinese quality supervision and inspection and quarantine departments first, he said.

The import ban has caused the estimated return of 10,000 tons of chicken to China and caused losses of millions of yuan.

The spinach warning has caused losses of over US$3 million for exporters in Shandong alone. Spinach exporters in other areas also reported a 70 percent fall in their exports after the warning was issued on May 20, said Cao.

He said the interests of Japanese consumers had also been severely damaged by the protectionist measures, while the price of imported chicken legs increased to US$2,500 per ton from US$1,500 per ton in Japan after imports from China were blocked.

(China Daily June 3, 2003)